App-based smartbank 86 400 has become the first bank to offer digital mortgages through brokers, with an application process it says requires just a single slip of paper.
State governments require that the contract of sale be paper-based – but all the other forms are filled in online.
“Everything that can be digitised, has been digitised,” said 86 400 chief executive Robert Bell.
The bank uses a product from a company called Mogoplus to automatically capture income and expenses and pre-populates them onto the loan application, meaning the application can be filled out within half an hour to an hour.
The bank is aiming to offer a decision within 24 hours, which 86 400 describes as up to six times faster than the major banks.
Macquarie-backed fintech Athena Home Loans and NAB’s UBank have been offering digital loans since February and Gateway Bank began running trials with them in April but 86 400 said it was the first provider to offer the digital home loans through brokers.
Nearly 60 per cent of all mortgages in Australia are processed through brokers and it’s the biggest financial decision most Australians will make in their life, Mr Bell said.
86 400 is working with Vow Financial and Specialist Finance Group to offer the loans, from Tuesday, with rates starting at 2.88 per cent per year.
86 400 launched its neobank nine weeks ago, becoming the first of several challenger banks to open to the general public.